Operating profit moved up by 16.2 per cent to Rs 201 crore, from Rs 173 crore. Net sales increased by 18.6 per cent to Rs 433 crore, from Rs 365 crore, reflecting better volumes and realisations. Gross profit rose to Rs 216 crore, from Rs 179 crore, said a release.

While other income shot up by 46.3 per cent to Rs 37 crore, from Rs 25 crore, total expenditure grew by 20.7 per cent to Rs 232 crore, from Rs 192 crore. Interest during the period was Rs 22 crore, against Rs 19 crore.

Net profit for the nine-month period ended December 31, 1998, increased 16.2 per cent to Rs 424 crore. Sales during the period grew by 21.9 per cent to Rs 1,296 crore. Operating profit rose to Rs 590 crore, from Rs 450 crore.

The company has reported a significant growth inproduction during the period April-December. Metal production grew by 22 per cent to Rs 180,320mt, from 147,797mt. While the rolled product output rose by 34 per cent to 32,256mt, production of conductor redraw rods moved up by 14 per cent to 38,328mt. Aluminium output was 316,970mt, a 22 per cent increase over the same period last year.

International consultant Kaiser Bechtel will submit its techno-feasibility study on the company's proposed integrated greenfield project in Orissa soon. A final decision will be taken only after a detailed analysis of the report, said the release.

Construction at the company's aluminium wheel plant is progressing, and the plant is expected to be commissoned in the first quarter of 1999-2000. Production is stabilising at its foil plnat at Silvassa, the release added.

INSIGHT

Creditable results: Considering the falling aluminium prices on the LME, Hindalco's results are creditable. The company has improved its operating margin for nine months from 42per cent in the previous fiscal to 45 per cent in the current fiscal. Turnover growth, however, has slowed down from 23.6 per cent in the first half to 18.6 per cent in the third quarter, while operating margin in the third quarter has improved to 46 per cent. This has been possible mainly on account of higher value-added products. Though aluminium prices show no signs of improvement, the increasing contribution of value-added products to Hindalco's turnover will benefit the company.